Hedge Funds Are Selling BGC Partners, Inc. (BGCP)

Is BGC Partners, Inc. (NASDAQ:BGCP) an outstanding investment right now? Hedge funds are reducing their bets on the stock. The number of long hedge fund positions were trimmed by 2 lately.

In the eyes of most investors, hedge funds are viewed as underperforming, old investment vehicles of years past. While there are over 8000 funds in operation at present, we at Insider Monkey look at the elite of this club, about 450 funds. Most estimates calculate that this group has its hands on the majority of all hedge funds’ total capital, and by paying attention to their top picks, we have revealed a few investment strategies that have historically outpaced the broader indices. Our small-cap hedge fund strategy outperformed the S&P 500 index by 18 percentage points per year for a decade in our back tests, and since we’ve started sharing our picks with our subscribers at the end of August 2012, we have trumped the S&P 500 index by 23.3 percentage points in 8 months (explore the details and some picks here).

BGC Partners, Inc. (NASDAQ:BGCP)Equally as important, optimistic insider trading activity is a second way to parse down the world of equities. Just as you’d expect, there are a number of stimuli for an insider to cut shares of his or her company, but only one, very obvious reason why they would initiate a purchase. Plenty of academic studies have demonstrated the useful potential of this method if investors understand where to look (learn more here).

Now, we’re going to take a peek at the recent action surrounding BGC Partners, Inc. (NASDAQ:BGCP).

How are hedge funds trading BGC Partners, Inc. (NASDAQ:BGCP)?

Heading into Q2, a total of 8 of the hedge funds we track were bullish in this stock, a change of -20% from the previous quarter. With hedgies’ sentiment swirling, there exists a few key hedge fund managers who were upping their stakes considerably.

According to our comprehensive database, AQR Capital Management, managed by Cliff Asness, holds the largest position in BGC Partners, Inc. (NASDAQ:BGCP). AQR Capital Management has a $3.4 million position in the stock, comprising less than 0.1%% of its 13F portfolio. Sitting at the No. 2 spot is Millennium Management, managed by Israel Englander, which held a $1.4 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Some other peers that hold long positions include Glenn Russell Dubin’s Highbridge Capital Management, and John Overdeck and David Siegel’s Two Sigma Advisors.

Because BGC Partners, Inc. (NASDAQ:BGCP) has faced bearish sentiment from the entirety of the hedge funds we track, logic holds that there exists a select few money managers that decided to sell off their full holdings at the end of the first quarter. Interestingly, Jim Simons’s Renaissance Technologies dumped the largest investment of the 450+ funds we key on, totaling close to $2.1 million in stock.. Paul Tudor Jones’s fund, Tudor Investment Corp, also said goodbye to its stock, about $0.7 million worth. These bearish behaviors are interesting, as total hedge fund interest was cut by 2 funds at the end of the first quarter.

How have insiders been trading BGC Partners, Inc. (NASDAQ:BGCP)?

Bullish insider trading is at its handiest when the company we’re looking at has experienced transactions within the past half-year. Over the latest 180-day time period, BGC Partners, Inc. (NASDAQ:BGCP) has seen zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).

Let’s also take a look at hedge fund and insider activity in other stocks similar to BGC Partners, Inc. (NASDAQ:BGCP). These stocks are GFI Group Inc. (NYSE:GFIG), Medley Capital Corp (NYSE:MCC), FXCM Inc (NYSE:FXCM), Piper Jaffray Companies (NYSE:PJC), and Interactive Brokers Group, Inc. (NASDAQ:IBKR). All of these stocks are in the investment brokerage – national industry and their market caps resemble BGCP’s market cap.

Company Name # of Hedge Funds # of Insiders Buying # of Insiders Selling
GFI Group Inc. (NYSE:GFIG) 7 0 5
Medley Capital Corp (NYSE:MCC) 8 1 0
FXCM Inc (NYSE:FXCM) 8 0 6
Piper Jaffray Companies (NYSE:PJC) 12 0 3
Interactive Brokers Group, Inc. (NASDAQ:IBKR) 13 0 3

With the results shown by the aforementioned tactics, retail investors must always pay attention to hedge fund and insider trading activity, and BGC Partners, Inc. (NASDAQ:BGCP) shareholders fit into this picture quite nicely.

Click here to learn why you should track hedge funds

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

5 Retirement Mistakes To Avoid (and Einstein’s Famous Quote)

11 Smartest People in the World

6 Films About the Financial World You Need To Watch (While “The Wolf” is Not Around)

Warren Buffett and Billionaires Are Crazy About These 7 Stocks

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top Businesses to Invest In

Top 5 Things You Might Be Doing Wrong With Your Business

Top 5 Strategic Technology Trends in 2014

Top Rags to Riches Stories

Parenting Behavior That Promotes Future Leaders

Top 5 Mistakes Made by Small Businesses

Top 5 Most Common and Potentially Devastating Financial Blunders

Top 5 Highest Paying Jobs for Web Designers

Top 6 Most Respected Professions that Also Pay Well

Top 5 Pitfalls Investors Should Avoid

Top 6 Lawyers and Policy Makers Under 30

Top 6 New Year’s Resolutions for Entrepreneurs

Top 7 Locations to Check in on Facebook

Top 5 Mistakes made by Rookie eBay Sellers

Top 7 eBook Publishers in 2013

Top 6 Health Industry Trends in 2014

5 Lessons for Entrepreneurs from Seth Godin

Top 5 Success Tips from Jordan Belfort – the Wolf of Wall Street

Best Master’s in Finance Degree Programs

Top 6 Earning Celebrities Over 50

The most expensive sports to play

Top 7 Earning Celebrities Under 25

Best 7 Online Courses to Take: Free Finance MOOCs

Top 6 Bad Habits that Promote Failure

20 Most Valuable Soccer Teams in the World in 2013

12 Most Expensive Countries for Foreign Students

Top 30 Most Influential Women in the World

Top 20 Most Expensive New Year Eve Shows

Top 5 Best Vocational Careers

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!